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For the first time, the 2015 World Trade Organisation (WTO) Ministerial Conference will be held in Africa, specifically in Kenya.
WTO director general Roberto Azevêdo has in the past said the WTO has helped to boost trade growth, resolve trade disputes and support developing countries to integrate into the trading system.
But most African countries ask if the multilateral trade negotiations have had any impact on African initiatives. Why are trade reforms at the WTO not changing their prospects for the better?
Why has trade boosted growth in other developing countries but only minimal gains in the continent despite its resource endowment?
African countries face supply side constraints that need to be addressed, although trade reforms discussed at the WTO meet tend not to be implemented.
The WTO negotiations are usually complex and unfortunately due to chronic brain drain, most African trade experts work for international organisations and universities abroad. Therefore they have little influence on the multilateral trading system.
Furthermore, agriculture has been adversely affected through schemes of domestic support programmes, export subsidies and export competition propelled by the developed countries in support of their agriculture sectors.
How can African countries succeed in trade negotiations reforms by asking for a level playing field? What will be the implication for the developed world ceding to Africa’s ambitions?
How will trade talk supersede the agenda of security and terrorism in most African legislative assemblies?
One of the contentious issues in the multilateral talks is market access for both agricultural and non-agricultural exports.
Improved market access will see African exporters laughing all the way to the bank. But industries need to add value to their products. African firms also face huge constraints through imposition of huge tariffs.
For Africa to be successful in the multilateral trade talks, the developed world has to recognise Africans’ aspirations.
But at the same time, Africa has to do more research to assess the impact of trade negotiations proposals and take action in liberalising but not depending on “fairness” to every rule.
Source: Business Daily
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.